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Should Value Investors Buy LouisianaPacific (LPX) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
LouisianaPacific (LPX - Free Report) is a stock many investors are watching right now. LPX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 13.66, which compares to its industry's average of 19.61. LPX's Forward P/E has been as high as 24.27 and as low as 4.93, with a median of 15.86, all within the past year.
We should also highlight that LPX has a P/B ratio of 2.82. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. LPX's current P/B looks attractive when compared to its industry's average P/B of 2.99. Over the past year, LPX's P/B has been as high as 3.99 and as low as 2.62, with a median of 3.13.
Finally, investors should note that LPX has a P/CF ratio of 10.91. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 23.12. Within the past 12 months, LPX's P/CF has been as high as 15.46 and as low as 2.65, with a median of 5.05.
Value investors will likely look at more than just these metrics, but the above data helps show that LouisianaPacific is likely undervalued currently. And when considering the strength of its earnings outlook, LPX sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy LouisianaPacific (LPX) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
LouisianaPacific (LPX - Free Report) is a stock many investors are watching right now. LPX is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 13.66, which compares to its industry's average of 19.61. LPX's Forward P/E has been as high as 24.27 and as low as 4.93, with a median of 15.86, all within the past year.
We should also highlight that LPX has a P/B ratio of 2.82. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. LPX's current P/B looks attractive when compared to its industry's average P/B of 2.99. Over the past year, LPX's P/B has been as high as 3.99 and as low as 2.62, with a median of 3.13.
Finally, investors should note that LPX has a P/CF ratio of 10.91. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 23.12. Within the past 12 months, LPX's P/CF has been as high as 15.46 and as low as 2.65, with a median of 5.05.
Value investors will likely look at more than just these metrics, but the above data helps show that LouisianaPacific is likely undervalued currently. And when considering the strength of its earnings outlook, LPX sticks out at as one of the market's strongest value stocks.